Why Register a Company in Australia?
- Australia promotes free trade and has trade agreements with multiple countries including New Zealand, Thailand, Singapore and the United States of America.
- Due to the government’s pro-business policies, investors can obtain incentives through the Australian Trade Commission (Austrade) which helps the international companies’ trade goods and services from Australia. The commission also identifies potential investment projects and business alliances who want to register their company in Australia.
- Australia supports world-class, globally significant research and development activities and is backed by solid infrastructure, generous investment into R & D activities, incentives for businesses whose area of major is in Research, and strong intellectual property protection.
- Over 96% of the businesses in Australia are small businesses. The authorities are always ready to help such businesses grow by providing a whole suite of services to assist in the accomplishment.
- A company setting up a business in Australia need not worry about the political disturbance. The Australian economy is stable and is ranked as one of the 20 largest in the world, around the same sizes as the four most dominant Western Europe countries.
How to Register a Company in Australia?
A company registration in Australia can be done through the following steps:
1. Register a Business Name
When starting a company, you will need to have a company name registration in the Australian Business Register. Check if the business name you want is available on the ASICs (Australian Securities and Investment Commission) website to avoid infringing on someone else’s legal right. If it is not available then register for the same. The cost to register a company in Australia is $34 AUD for a year and/or $79 for three years.
2. Choose a Structure for the Business
When deciding on a structure for your business, choose the one that best suits your business needs, keeping in mind that there are advantages and disadvantages for each structure. You can change the structure throughout the life of your business.
3. Apply for Australian Business Number (ABN)
ABN is a unique number that allows you to identify your business to the government as well as other businesses. To get the ABN you will have to provide a set of details, which include:
- Personal details
- Business information
- Associate details
- Reason for application
- Business activity details
- A declaration form denoting that the information you have provided is true
Once completed, you will receive an email confirmation of approval for getting the ABN.
4. Register Your Website Domain Name
Your domain name is your website address on the internet and gives your business an online identity or brand for your customers. Here ABN is required if you want to buy a ‘.com.au’ or ‘.net.au’ web address.
5. Apply for Tax Registration
After you get the ABN, the next step is to apply for a Tax File Number. Registering for goods and service tax is applicable only when the GST turnover is $75000 AUD or more. If you are not registered for the GST, check every month if you have reached the threshold to be applicable for the same. Apart from this, you must also register for Pay-As-You-Go Withholding and a bank account in the name of the company.
Documents Required to Set Up a Company in Australia
- Certificate of incorporation
- Operating Agreement [a document that outlines the financial and functional decisions of the business]
- Detailed business plan
- Insurance policy
- Non-disclosure agreement
- Business license
- Contract documents